Peru to Push Ahead With Newmont $4.8 Billion Project Review

Peru’s government will proceed with an international environmental review of Newmont Mining Corp. (NEM)’s stalled $4.8 billion gold deposit amid opposition from protesters, Finance Minister Miguel Castilla said.

Peru seeks to bring online $50 billion in mining projects including Newmont’s Minas Conga mine after talks collapsed this week, Castilla said.

“Peru doesn’t have the luxury of going without mining investment, especially at a time when the external situation looks unfavorable,” Castilla said today at a news conference in Lima. “We’re trying to ensure investment projects go ahead while respecting the environment and the community.”

Newmont, based in Greenwood Village, Colorado, suspended work last month at Minas Conga, Peru’s biggest venture, after villagers in the northern Andes protested that the mine will dry up water supplies. Companies including Anglo American Plc (AAL) and Rio Tinto Plc (RIO) have cut back investment in Peru because of the protests, central bank President Julio Velarde said Dec. 16.

Newmont fell less than 1 percent to close at $62.88 in New York.

To contact the reporter on this story: Alex Emery in Lima at aemery1@bloomberg.net

To contact the editor responsible for this story: Dale Crofts at dcrofts@bloomberg.net

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